Governer Deval Patrick released his 28.2 billion budget proposal. The proposal is heading over to the Legislature. Once the Senate and the House construct their version of the bill, they will send it back to Gov. Patrick. The 2011 fiscal year begins on the first of July.
Some highlights regarding the new Massachusetts budget proposal include:
Among other things, the new proposal includes an increase in taxes on soda and candy. The candy and soda tax increase would result by eliminating the current sales tax exemption. Taxing soda and candy would generate $52 million for health prevention programs. These programs are setup to educate the public about lifestyle habits that are detrimental to your health. Sticking with the healthy living theme, new tax hikes are proposed for smokeless tobacco and cigars.
The new budget proposal cuts back on a tax credit program hoping to bring film producers to Massachusetts. Massachusetts film industry insiders argued that cutting the program is shortsighted seeing as the program has been doing well. It has generated more than $1 billion in economic activity over the last four years, but the program is expensive to maintain.
Cuts have also been made reducing a life sciences tax credit designed to lure companies to Massachusetts. While this program has enjoyed success and creation of new jobs for Massachusetts, the program is expensive. The credits will not be eliminated, simply reduced.
The budget proposal will continue to fund the Commonwealth Care program. This program extends health care coverage to 170,000 adults. It is a component from the state’s 2006 health care law.
Gov. Patrick’s budget proposal depends in part upon $600 million in federal aid. The catch is that Congress hasn’t yet approved the bill and if it doesn’t pass, than additional cuts will be needed. The 2011 budget proposal will be a three percent increase over last years budget.
